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Question DetailsAsked on 4/21/2020

Are we required to reimburse general contractor of all actual costs paid after cancellation of the contract?

GC accepted my cancellation for a bathroom remodeling contract 9 days after signing for his mistakes-Pulled a wrong permit for the job, added a change order to huge design change not agreed to. The only payment given is the $1000 deposit. I also had an engineer & architect over to measure my house to make the plans. Demolition was never started & plans were never submitted to the city for permit approval. A week later, GC sent us an unsigned settlement agreement and a cost breakdown of what GC paid a week after cancelling, $3500 total. GC is charging us architect/engineer fees & claimed he already paid out of pocket for this. We won't get the physical plans until we pay the settlement.

Contract+payments schedule doesn't specify engineer/architect plans. The schedule of payment goes from:
Deposit $1000
Starting Demolition $6000

Do we have to GC's full cost so far or only to the extent of deposit. I may not keep the plans if its not city-approved or transferable

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I've been a GC in the state of NV for 19 years now. You're required to reimburse any out of pocket expenses that occurred up to the date of the cancellation.


However, if the GC made mistakes, you are not responsible for that cost. Including the wrong permit, order change, and so on. He's supposted to be the expert. That's why you hired him in the first place. So here's the breakdown:


You owe out of pocket expenses to the cancel date minus his mistakes. If you're having to pay for any engineer or architect work, you need to get copies of that work. Ask to see GC's receipts. You only pay for what you get. Nothing more.


That being said, you need to look carefully through the contract you signed to see if there are any cancellation penalties that you agreed to.


If he persists, contact the Contractor's Board and submit a complaint. If needed there is a fund called "Residential recovery fund" for contractors that mess up and leave you in a bind.

And if it should go to court, there's not a judge anywhere that will make a consumer pay a contractor for their mistakes or work not done.


I hope this helps.

Gary

Answered 1 month ago by Ghere4you




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